BAX Gross Margin Analysis

Baxter’s gross margin of 33.0% means that for every dollar of revenue, 33 cents remain after subtracting the direct costs of producing its medical products (like raw materials and manufacturing labor), while the other 67 cents cover those costs.

Compared to its healthcare sector peers, this 33.0% sits far below the sector median of 69.8%, placing Baxter in the 13th percentile — meaning 87% of peers report a higher gross margin. The trend direction is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and only a single historical value of 33.0% is provided for the last eight quarters. Without trend data, it is impossible to tell whether margins are improving or deteriorating, but the low absolute level already flags a structural profitability disadvantage. This combination of a very low gross margin and no observable trend increases investment risk, as Baxter’s ability to generate profit from sales is far weaker than the typical healthcare company. This metric directly contradicts the overall CAUTIOUS verdict: the low gross margin supports caution, since it signals weaker pricing power or higher input costs relative to peers.

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